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Spuds Chips Ltd (SCL) processes crinkle-cut potato chips. Production requires three (3) processes: Cutting, Cooking and Packaging. In the Cooking Department direct materials, vegetable oil (90%), is added to the transferred-in cut potatoes from the cutting department to cook. At the end of the process, the remaining 10% of the direct materials, herbs and spices are added. The company uses theFirst-in, First-out (FIFO)method. Production data for the Cooking Department in June are as follows:

Cooking Department

Beginning WIP^#inventory (kg)

12,000

Beginning WIP inventory costs

Transferred-in materials

(? %complete)

$2,400

Materials(? %complete)

$600

Conversion (70% complete)

$1,260

June data

Started (kg)

129,000

June costs

Transferred-in costs

$25,800

Materials

$7,746

Conversion

$18,570

Completed and Transferred-out (kg)

130,000

Ending WIP inventory(kg) ? units

Conversion (20% complete)

^#WIP: Work in process

WIP: Work in process

Required:

1.Assigning (a) a quantity (physical flow) schedule and (b) compute the equivalent units for all inputs.

2.Calculate the costs per equivalent unit for all inputs.Round up your answers to the nearest cent.

3. Calculate:

a. the total cost of goods transferred out;and

b. the cost of ending Work in Process.

4.Journal entries for the following transactions:

a.Transferred-in materials costs; and

b.Conversion costs incurred during the current period

5. Briefly describe the difference between Weighted average method and FIFO method, in the calculation of (a) equivalent units and (b) cost per equivalent unit

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